Section 3: Evaluating a CUF
To ensure each DBE firm is performing a CUF,
TxDOT must monitor contract activity and certify in writing that
DBE firms are performing a CUF. To determine whether a DBE firm
is performing a CUF, five elements must be considered: management,
workforce, equipment, materials, and performance.
A CUF review is required for all DBE firms on all federally-funded
projects, including projects with no DBE goal. This also includes
DBE truckers, suppliers and other vendors where a subcontract is
not required.
TxDOT field personnel conduct CUF reviews and inspect jobsites
to verify that the DBE firm is performing and managing the work.
The reviewer’s activities include making observations and interviewing
DBE personnel.
Field staff review project-related documents such as:
- Executed subcontracts
- Certified payrolls
- Invoices
- Purchase Orders
- Delivery tickets and equipment title of ownership or lease agreements
These documents identify and support who is paying and supervising
employees, ordering and paying for materials, and whose equipment
is used on the project.
To qualify for goal credit, DBEs must perform a CUF.
If a DBE firm is presumed not to be performing a CUF, TxDOT
will notify the DBE firm and offer the opportunity to provide rebuttal
information. If the presumption prevails, no work performed by the
DBE will count as eligible participation. The denial of goal credit
may occur before or after a CUF determination has been made by TxDOT.
If the denial of goal credit results in a goal shortfall,
the prime contractor will be required to obtain a substitute DBE
to meet the contract goal or provide an adequate good faith effort
when applicable. CUF determinations are not subject to administrative
appeal to USDOT.